This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.Need a new registration confirmation email? Click here

MB Financial, Inc. Reports Third Quarter 2012 Net Income Of $23.1 Million And An Increase Of The Quarterly Dividend To $0.10 Per Share

(2) Accruing restructured loans consists primarily of residential real estate and home equity loans that have been modified and are performing in accordance with those modified terms as of the dates indicated.

The following table presents data related to non-performing loans by category, excluding loans held for sale and credit-impaired loans that were acquired as part of our FDIC-assisted transactions (dollar amounts in thousands):

September 30,

June 30,

March 31,

December 31,

September 30,

2012

2012

2012

2011

2011

Commercial and lease

$

22,648

$

24,402

$

34,471

$

36,995

$

37,644

Commercial real estate

55,387

62,512

70,939

76,551

86,907

Construction real estate

1,225

1,470

1,553

1,145

2,913

Consumer

26,023

25,146

17,727

14,700

13,515

Total non-performing loans

$

105,283

$

113,530

$

124,690

$

129,391

$

140,979

We define potential problem loans as performing loans rated substandard that do not meet the definition of a non-performing loan (See “Asset Quality” section above for non-performing loans). Potential problem loans carry a higher probability of default and require additional attention by management. The following table presents data related to potential problem loans by category, excluding loans held for sale and credit-impaired loans that were acquired as part of our FDIC-assisted transactions (dollar amounts in thousands):

September 30,

June 30,

March 31,

December 31,

September 30,

2012

2012

2012

2011

2011

Commercial and lease

$

48,933

$

46,532

$

49,197

$

39,193

$

55,019

Commercial real estate

73,941

82,596

98,834

99,588

108,557

Construction real estate

11,415

11,938

11,409

10,375

15,528

Consumer

-

-

-

600

603

Total non-performing loans

$

134,289

$

141,066

$

159,440

$

149,756

$

179,707

The following table represents a summary of OREO, excluding OREO related to assets acquired in FDIC-assisted transactions (in thousands):

September 30,

June 30,

March 31,

December 31,

September 30,

2012

2012

2012

2011

2011

Balance at the beginning of quarter

$

49,690

$

63,077

$

78,452

$

87,469

$

88,185

Transfers in at fair value less estimated costs to sell

63

910

1,751

3,657

15,014

Capitalized OREO costs

978

967

359

552

644

Fair value adjustments

(4,648

)

(4,507

)

(4,764

)

(3,733

)

(2,524

)

Net gains on sales of OREO

497

351

416

113

170

Cash received upon disposition

(4,153

)

(11,108

)

(13,137

)

(9,606

)

(14,020

)

Balance at the end of quarter

$

42,427

$

49,690

$

63,077

$

78,452

$

87,469

Below is a reconciliation of the activity in our allowance for credit and loan losses for the periods indicated (dollar amounts in thousands):

Three Months Ended

Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

2012

2012

2012

2011

2011

2012

2011

Allowance for credit losses, balance at the beginning of period

$

128,840

$

133,255

$

135,975

$

141,861

$

147,107

$

135,975

$

192,217

Provision for credit losses

(13,000

)

-

3,100

8,000

11,500

(9,900

)

112,750

Charge-offs:

Commercial loans

(75

)

(1,451

)

(539

)

(2,932

)

(3,497

)

(2,065

)

(14,639

)

Commercial loans collateralized by

assignment of lease payments (lease loans)

-

(1,720

)

-

(1,373

)

-

(1,720

)

(93

)

Commercial real estate loans

(2,994

)

(2,415

)

(3,003

)

(3,793

)

(7,815

)

(8,412

)

(92,840

)

Construction real estate

(71

)

(444

)

(3,436

)

(6,989

)

(6,008

)

(3,951

)

(45,928

)

Residential real estate

(474

)

(1,108

)

(294

)

(860

)

(141

)

(1,876

)

(11,783

)

Indirect vehicle

(433

)

(488

)

(715

)

(954

)

(611

)

(1,636

)

(1,882

)

Home equity

(1,209

)

(876

)

(1,072

)

(2,061

)

(1,605

)

(3,157

)

(9,005

)

Consumer loans

(332

)

(274

)

(258

)

(285

)

(475

)

(864

)

(1,363

)

Total charge-offs

(5,588

)

(8,776

)

(9,317

)

(19,247

)

(20,152

)

(23,681

)

(177,533

)

Recoveries:

Commercial loans

306

386

2,038

634

1,413

2,730

4,736

Commercial loans collateralized by

assignment of lease payments (lease loans)

111

93

256

1

5

460

224

Commercial real estate loans

12,893

3,061

162

747

739

16,116

2,585

Construction real estate

752

141

565

3,519

681

1,458

5,071

Residential real estate

8

188

34

9

7

230

40

Indirect vehicle

224

300

311

378

327

835

1,021

Home equity

303

100

20

6

151

423

218

Consumer loans

77

92

111

67

83

280

532

Total recoveries

14,674

4,361

3,497

5,361

3,406

22,532

14,427

Total net recoveries (charge-offs)

9,086

(4,415

)

(5,820

)

(13,886

)

(16,746

)

(1,149

)

(163,106

)

Allowance for credit losses

124,926

128,840

133,255

135,975

141,861

124,926

141,861

Allowance for unfunded credit commitments

(3,744

)

(7,084

)

(7,824

)

(9,177

)

(13,251

)

(3,744

)

(13,251

)

Allowance for loan losses

$

121,182

$

121,756

$

125,431

$

126,798

$

128,610

$

121,182

$

128,610

Total loans, excluding loans held for sale

$

5,624,845

$

5,723,249

$

5,789,765

$

5,950,995

$

5,813,737

$

5,624,845

$

5,813,737

Average loans, excluding loans held for sale

$

5,630,232

$

5,712,630

$

5,802,037

$

5,818,425

$

5,827,181

$

5,714,657

$

6,191,268

Ratio of allowance for loan losses to total loans, excluding loans held for sale

2.15

%

2.13

%

2.17

%

2.13

%

2.21

%

2.15

%

2.21

%

Net loan (recoveries) charge-offs to average loans, excluding loans held for sale (annualized)

(0.64

)%

0.31

%

0.40

%

0.95

%

1.14

%

0.03

%

3.52

%

Our allowance for loan losses is comprised of three elements: a general loss reserve, a specific reserve for impaired loans and a reserve for smaller-balance homogenous loans. The following table presents these three elements of our allowance for loan losses (in thousands):

September 30,

June 30,

March 31,

December 31,

September 30,

2012

2012

2012

2011

2011

General loss reserve

$

95,586

$

93,904

$

98,673

$

102,196

$

102,752

Specific reserve

11,300

13,674

13,734

10,804

11,416

Smaller-balance homogenous loans reserve

14,296

14,178

13,024

13,798

14,442

Total allowance for loan losses

$

121,182

$

121,756

$

125,431

$

126,798

$

128,610

Although management believes that adequate general, specific and smaller-balance homogenous loan loss allowances have been established, actual losses are dependent upon future events and, as such, further additions to the level of general, specific and smaller-balance homogenous loan loss allowances may become necessary.

Product Features:

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.